The diversification of consumer demand is driving the diversification of consumption scenarios and channels, making 'what you think is what you get' a rigid need for most consumers, especially young ones. So, how can traditional retail stores meet the ever-changing consumer demand more quickly? Recently, New Distribution visited a JD convenience store to see how JD is transforming and upgrading traditional retail stores. △JD Convenience Store **-01-Smart Convenience Store in a Closed Scene The JD convenience store visited by New Distribution is located in the JD Group building, with white-collar workers commuting daily as its main audience. As we all know, the fast pace of life and work, along with various pressures, leaves young office workers with little time for shopping. The JD convenience store inside the JD Group building has "moved" daily necessities such as leisure snacks, milk and beverages, toiletries, and self-heating food directly into the office building, allowing everyone to conveniently purchase needed items "without leaving the building." This JD convenience store is not a traditional convenience store but a modern intelligent retail terminal. JD has applied its years of accumulated big data capabilities, consumer insight capabilities, product sell-through analysis capabilities, and intelligent management capabilities to this small store of over 20 square meters. First, the products in the store are all combined based on the living and working patterns of the surrounding consumer group, leveraging JD New Channel's precise product selection capabilities to structure the store's product mix. This is also an important reason why over 600 SKUs in a space of just over 20 square meters can meet the basic shopping needs of daily commuters. △A corner of the store, consumers selecting and paying Second, the application of innovative smart technologies such as e-ink electronic price tags, facial recognition, and face-scan payment in the store greatly improves sales efficiency while reducing unnecessary labor costs. Based on the store's product sell-through data, staff can also replenish products in a timely manner and carry out "scenario-based replenishment" at specific time points. For example, consumer demand for convenience stores varies at different times: typical breakfast items are milk and bread; after lunch, beverages; and during afternoon tea time, leisure snacks. Through "scenario-based replenishment," product sales are increased, and by increasing the display and shelf space of certain products, sales are boosted, thereby increasing the store's overall profit. △A JD convenience self-service kiosk in Xi'an Similarly, at the end of July, a JD convenience self-service kiosk of just over 10 square meters, specifically targeting white-collar workers, appeared at the entrance of an office building in Xi'an, Shaanxi. In less than half a month, the kiosk's daily revenue covered costs such as rent, labor, and utilities, and it has been continuously rising. It is not difficult to see that these new convenience stores share the following characteristics: 1. Small store area: These convenience stores are generally small, with relatively low rental costs; 2. Wide variety of products: Despite the small size, they sell milk and beverages, food, rice balls, bread, and other products, maximizing the satisfaction of consumers' daily needs; 3. Intelligent operation: The use of face-scan payment and electronic price tags provides easy consumption and an intelligent experience; **4. Light business model: The small store area and standardized operation make the business model highly replicable. These small JD convenience stores are not only suitable for offices and office buildings but can also be customized according to the owner's needs and the location environment, and can be applied in various scenarios such as libraries, schools, airports, and stations. **-02-Thousand Stores with Thousand Faces and Thousand Stores with One Face Whether it is the JD convenience store at JD Group headquarters or the JD convenience self-service kiosk in Xi'an, both are supported by JD New Channel. As a leading FMCG B2B platform in the domestic industry, JD New Channel not only provides one-stop high-quality supply support, complete logistics and after-sales service to over one million stores nationwide, solving their product procurement problems. At the same time, relying on the B2B2C full-chain data capability, JD New Channel also outputs brand, model, and management, introduces diversified traffic and innovative marketing models, and continuously helps traditional retail stores achieve digital upgrades by enhancing its own multi-scenario retail capabilities. For example, New Channel has further strengthened the unification of store image identification, store management, facility configuration, service standards, product planning, and logistics distribution, thereby continuously optimizing consumers' shopping experience in stores. In addition, JD New Channel has introduced diversified open traffic sources such as the JD APP, JD Convenience GO, JD Daojia, and Meituan to stores, helping them solve procurement issues while also driving traffic, promoting conversion, and boosting sales through continuous external traffic. △Zheng Hongyan (left), Vice President of JD Group and President of the New Channel Business Unit of JD Retail Group's Supermarket and Omnichannel Business Group; Zhao Bo (right), founder of New Distribution Zheng Hongyan, Vice President of JD Group and President of the New Channel Business Unit of JD Retail Group's Supermarket and Omnichannel Business Group, said, "The essence of retail is cost, efficiency, and experience. The solution proposed by New Channel is intelligent transformation based on digitalization, and the ability to precisely match products based on user profiles. In the future business model, the most important point is to be able to give consumers the right product in the current scenario and time. **In the past, New Channel accumulated complete store supply capabilities, and we also built the ability to upload user profiles upward and download decisions on store inventory downward based on the store ERP system. New Channel has built JD convenience stores to have a thousand faces for a thousand stores, while in service, they can achieve a thousand stores with one face." Whether in any segmented scenario, the different forms of JD convenience stores are all based on the capabilities that JD New Channel has accumulated from past store supply and store selling. If previously JD New Channel emphasized empowering traditional stores, now we increasingly see JD New Channel entering the retail field with a new posture, deeply engaging in the front line, and ultimately driving the digital upgrade of offline retail stores based on product capabilities, data capabilities, demand insight, and scenario mastery. **-03-**Helping Brand Owners Create Market Increment The value of JD New Channel's intelligent supply chain lies not only in helping stores purchase full-category, high-quality, and low-priced products and distribute them more efficiently, but also in helping brand owners truly realize the linkage of online and offline business. By gaining insights into the differences in consumption behavior, habits, and shopping methods in different consumption scenarios, it provides brand owners with richer and more comprehensive decision-making bases for product development, pricing, marketing strategies, and distribution policies, making market strategies truly targeted. In the past, transactions and delivery were completely separated, and online and offline were separate systems, making real-time and efficient connectivity difficult. Online data could not effectively guide offline, and offline transactions could not feed back online, resulting in extremely low efficiency. △Consumers self-checkout JD New Channel, through the store's intelligent system, effectively connects products, consumers, and stores. All transaction data is real-time online, consumer profiles are visible at any time, and product inventory and sell-through conditions are clearly checkable, thus building a good infrastructure for brand owners' product promotion and new product testing. Compared with the past, the product verification and market distribution cycle for brand merchants will be greatly shortened, and distribution efficiency will be greatly improved. For traditional retail stores, only by continuously arming themselves with digital tools and methods and choosing good partners can they develop healthily and sustainably. With the acceleration of digitalization in various industries, intelligent and digital distribution methods will inevitably become a rigid need for all enterprises, and JD New Channel will undoubtedly become an excellent partner for all brand owners, distributors, and retailers in the process of digital transformation and upgrading. It is understood that JD New Channel is currently open to franchisees for JD convenience stores and JD convenience self-service kiosks. Interested friends can scan the QR code to follow the "JD New Channel" official account below and contact relevant staff for details. Tips will be paid 400-2000 yuan once adopted.